Corona impact: Get ready for 15-20% cut in salary offers in UAE

Gulf News
May 29, 2020

Dubai: There aren’t that many job vacancies right now – but be prepared for a 15-20 per cent cut in salary expectations even for those positions that are still open. Businesses in the UAE are definitely not in a generous mood when it comes to hiring, with salary cuts now part of the new normal.

And they are definitely not willing to take on new hires without extracting some cost benefit from them. “We have seen major [salary] cuts across the board in hospitality, real estate, professional services and in retail,” said Vijay Gandhi, regional head at Korn Ferry Digital, the recruitment consultancy.

“And once the headcount correction is complete in [the local] financial services and energy sector, we may see more cuts in rewards and benefits in these categories as well.”

The salary cuts are slowly extending their way into the healthcare sector as well – just about every non-COVID-19 facing medical category is coming across cuts in the number of working hours and, by extension, their take home packages.

By end of June, more businesses and sectors in the UAE will have a better understanding of their short-term revenue prospects. By then, they will also have a better reading on what their staff strength should be – and whether there should be more trimming of the workforce. Or whether they should consider a few hires as well.

A long summer
So, realistically, it could be September before such decisions need to be taken. The coming weeks will then prove to be laden with anxiety for those who are expecting to land a job option after being laid off at their current employers.

There are multiple instances of recruitment decisions having been made in February/March, and then the companies rescinding those offers to the chosen candidates citing the business uncertainty.

“The decision to hire is taking longer – so job creation is now 4-6 weeks from interview and selection compared to 4-6 days in the past,” said Gandhi.

The lucky ones
Recently, free zones and other entities had made it easier for personnel on the visa of one entity being able to smoothly transfer to another if they are likely to be made redundant. “We are seeing more flexibility being offered by the authorities given the circumstances, and the visa transfer process is happening,” said Gandhi.

“But in the vast majority of cases, businesses are going to wait and watch before normal hiring activity starts. Organizations will look to hire from September.”

A few hires are still happening
Even in the business turmoil set off by COVID-19, a few categories are still offering jobs. At the entry level, logistics services personnel and drivers with experience remain in demand.

Not just “routine jobs, there have been confirmations in more technical roles such as procurement and operations in healthcare and e-commerce,” said Gandhi. “Employers should keep an eye for good talent and have the talent acquisition team actively looking for good profiles.

“As such, organizations are not only looking at “right sizing” in numbers but also “future proofing” on what kind of skilled talent will help them in the post-COVID-19 world.”

But for the candidates, the present will be about waiting around for the call to come.

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News Network
March 31,2020

Mar 30: the UAE Cabinet approved a series of new initiatives, foremost among which was the automatic extension of residence permits expiring from March 1.

The residence visas would be extended for a renewable period of three months without any fees to ease the economic impact of the Covid-19 crisis on residents, official news agency WAM reported.

The Cabinet has also waived the administrative fines associated with infractions on the services provided by the Federal Authority of Identity and Citizenship, starting April 1 and lasting for a renewable period of three months.

The initiatives also entail granting a temporary license to use digital solutions for remotely notarising and completing judicial transactions.

Government services expiring from March 1 will also be extended from April 1 for a renewable period of three months. The decision applies to all federal government services, including documents, permits, licenses and commercial registers.

The UAE has introduced a slew of initiatives to control the spread of the Covid-19 virus, including the online renewal of driving licences and vehicle’s registration cards.

The country’s telecom regulator, Telecommunications Regulatory Authority (TRA), also issued a directive that no mobile service with expired ID documents will be disconnected or suspended in the UAE.

The UAE has reported a total of 611 Covid-19 infections and five related deaths in the country.

A national sterilisation programme is underway that will continue until Saturday April 4, concluding on the morning of Sunday, April 5.

Carried out daily from 8pm until 6am the following morning, the programme will include the disinfection of private and public facilities.

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Agencies
June 20,2020

Riyadh, Jun 20: Saudi Arabia will end a nationwide curfew and lift restrictions on businesses from Sunday morning after three months of lockdown to curb the spread of coronavirus, state news agency SPA quoted a source in the interior ministry as saying on Saturday.

The curfew will be lifted as of 6 AM local time on Sunday. Restrictions will remain, however, for religious pilgrimages, international travel and social gatherings of more than 50 people.

The kingdom introduced stringent measures to curb the spread of the novel coronavirus in March, including 24-hour curfews on most towns and cities.

In May, it announced a three-phase plan to ease restrictions on movement and travel, culminating in the curfew completely ending on June 21.

The number of coronavirus infections has risen in recent weeks following a relaxation of movement and travel restrictions on May 28.

The kingdom has recorded 154,223 cases of COVID-19 and a total of 1,230 deaths, the highest in the six-nation Gulf Cooperation Council.

Saudi Arabia plans to limit numbers at the annual haj pilgrimage to prevent a further outbreak of coronavirus cases, sources familiar with the matter told Reuters earlier this month.

Some 2.5 million pilgrims visit the holiest sites of Islam in Mecca and Medina for the week-long haj, a once-in-a-lifetime duty for every able-bodied Muslim who can afford it. Saudi Arabia asked Muslims in March to put haj plans on hold and suspended the umrah pilgrimage until further notice.

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coastaldigest.com web desk
July 6,2020

Dubai, July 6: In an attempt to make a comeback in the tourism sector amidst managing covid-19 crisis, Dubai is all set to welcome holiday-makers from foreign countries from July 7.

It said those entering would have to present certificates to show they had recently tested negative for the coronavirus or would undergo tests on arrival at Dubai airports.

Reassuring tourists of several comprehensive measures to prevent the transmission of the pandemic, Dubai Tourism urged global travellers to make the city that boasts world class health and safety standards "a must-visit destination."

Dubai Tourism hosted a virtual forum for stakeholders and partners to share its industry outlook ahead of the city's reopening to international tourists.

The forum, which was attended by nearly 2,000 key executives from the aviation, travel and hospitality sectors and across tourism touch-points, provided a first-hand insight into current and post-pandemic strategies that will help accelerate tourism momentum and position Dubai as a safe global destination.

Helal Saeed Almarri, director general, Dubai Tourism, said that the city has put in place a robust strategy to manage the pandemic with the key priority being to safeguard the health and well-being of citizens, residents and guests.

Dubai, which saw a 5.1 per cent in tourist traffic to 16.73 million in 2019, remains top of mind for travellers and ranks high in global Internet search rankings for tourist destinations.

Dubai Tourism has launched marketing activities designed to convey positive messages about travel in today's environment, Dubai's preparedness, high standards of quality and safety, unique experiences that await visitors and also address traveller concerns across every touch-point in their journey.

The forum highlighted the preventive measures taken so far against Covid-19 that have further elevated the UAE's standing as one of the world's safest countries. The UAE is globally ranked No.3 in testing per million of population. It was also ranked No.3 in an international survey that assessed satisfaction with governments' response to the pandemic.

Over 350 influencers were also deployed to take the Dubai story in 14 different languages to a global audience spanning 18 markets, which yielded over 21 million engagements across multiple social media platforms.

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